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My understanding of this may not be correct, but I will add it so that others can judge it. I was told that it was the practice of an american naval inspector in the ship yards to write "foo" in the various bulheads and cavities of ships being built that he inspected during WW2. The discovery of this name, in weird and awkward places in ships started talk amongst the sailors, and thus the ledgend grew. I don't htink the figure looking over the fence was in the story in the begining though.
Like I said - this is only a memory from 50 or so years ago, so treat it as such.
dave lees